Insights

The U.S. Justice Department is contemplating a significant move to dismantle Alphabet Inc.’s Google after a recent court ruling determined the company has monopolized the online search market. This potential action marks the first serious attempt by Washington to break up a tech giant for illegal monopolization since the failed efforts against Microsoft two decades ago. Alternatives under consideration include requiring Google to share more data with competitors and implementing measures to curb its advantages in artificial intelligence. In a related development, the U.S. Federal Trade Commission (FTC) has filed an amicus brief in the ongoing Epic Games antitrust lawsuit against Google, advocating for stringent actions against the company's monopolistic practices. Epic Games seeks to establish a competitive Android ecosystem, aiming to end Google’s alleged monopolistic behavior that harms various stakeholders, including device makers and app developers. The FTC emphasized that remedies should focus on restoring competition for the public good, rather than solely benefiting the plaintiff. The lawsuit accuses Google of monopolizing its Play Store and inflating app prices, with a settlement allowing developers to use alternative billing options. Additionally, Google has been criticized for paying mobile manufacturers and carriers to secure its position as the default search engine, reportedly spending $26 billion in 2021 alone. In response, Google’s president of global affairs, Kent Walker, defended the company’s search engine, asserting its quality while announcing plans to appeal the ruling. He emphasized Google’s commitment to enhancing user-friendly products amid ongoing legal challenges.